It has to be the people who are spending the money who are responsible if it all goes to shit. Reading's owners had a right good go and it blew up in their face, just like it did with us, just like it did with Derby, and countless others. The owners need to know that if they spend all the money and it doesn't go well then they take on the debt. Then it is entirely their decision about how much they spend.
It should be the same with clubs in the Premier League who get relegated. If they haven't included clauses to reduce wages in player contracts then why should they get help paying those contracts? Have rules in place where relegation clauses are mandatory. If you have that then there is no need for parachute payments. If they dont include relegation clauses they foot the bill until they can sell the player.